Hess Midstream Partners LP Investor Relations Presentation August 2017 1
Disclaimers Forward-Looking Statements This presentation contains forward-looking statements. These forward-looking statements generally can be identified by use of phrases such as “may,” “estimate,” “project,” “believe,” “plan,” “expect,” “anticipate,” “intend,” “forecast” or other simila r words or phrases in conjunction with a discussion of future operating or financial performance or events. Descriptions of our objectives, goals, targets, plans, strategies, budgets and projected financial and operating performance are also forward-looking statements. These statements represent our present expectation or beliefs concerning future events and are not guarantees. Such statements speak only as of the date they are made, and we do not undertake any obligation to update any forward-looking statement. We caution that forward-looking statements involve risks and uncertainties and are qualified by important factors that could cause actual events or results to differ materially from those expressed or implied in any such forward-looking statements. Please see the “Risk Factors” section of the prospectus dated April 4, 2017 and filed April 6, 2017 with the Securities and Exchange Commiss ion (“SEC”), and our other filings with the SEC. Investors are also urged to consider closely the risk factors and other disclosu re in Hess Corporation’s (“Hess”) Annual Report on Form 10 - K for the year ended December 31, 2016 and Hess’s other filings with the SEC. You can obtain these filings from the SEC by visiting EDGAR on the SEC’s website at www.sec.gov. Non-GAAP Measures This document includes certain non-GAAP financial measures as defined under SEC Regulation G. A reconciliation of those measures to our most directly comparable financial measures calculated and presented in accordance with GAAP is provided in the appendix to this presentation. 2
Hess Midstream Partners LP Overview Partnership Overview Strong Sponsorship • Hess Midstream Partners (“HESM”) is a midstream MLP with strong sponsorship: - Strategically located infrastructure in the core 50% 50% Ownership Ownership Other of the Bakken Midstream Hess Infrastructure Partners Assets (JV) - Highly visible growth 100% - Stable and growing cash flows Ownership HESM GP - Significant financial flexibility Hess & GIP 80% 2% GP Public • HESM targeting long-term 15% annual retained 100% IDRs economic 69.5% LP 30.5% LP Distribution Per Unit growth interest interest Interest Second Quarter 2017 Highlights 20% controlling interest • Consolidated EBITDA of $97 MM, up 8% from Gathering the first quarter of 2017 Processing & Storage* Terminaling & Export • Increased throughput volumes across all *Includes HESM 100% ownership of Mentor Storage Assets segments versus first quarter • Declared initial quarterly distribution July 25, 2017 Strong sponsorship with compelling platform for midstream growth 3
Hess Midstream’s Strengths Distinctive, premier MLP platform • Hess is a leading global E&P company Strategic Relationship • GIP is a leading infrastructure investor with Strong Sponsors Strategically Located, • Strategically advantaged asset base in the core of the Bakken Integrated, High Quality • Services Hess and third parties’ growing production Asset Base • 10-year commercial contracts 1 Stable, Growing Cash Flows Supported by • Renewable for 10 additional years at our sole option Long-Term Commercial • 100% fee-based with MVCs, inflation escalators, fee redeterminations Contracts with Hess • Targeting long-term 15% annual distribution growth per unit Multiple Drivers • Robust ROFO drop down inventory and future acquisition capacity of Long-Term Growth • Unused $300 MM revolving credit facility (as of 6/30/2017) Significant • Flexibility to fund organic and drop down growth Financial Flexibility • Senior management averages >20 years of experience Integrated Team with Strong Execution • Proven track record of execution Track Record Designed to deliver long-term, competitive distribution growth (1) Effective January 1, 2014. 4
Strategic Relationship with Strong Sponsors Hess is a Leading Global Independent E&P Company Global E&P Company Focused Portfolio, Balanced for Risk Focused global portfolio, balanced for risk % of 2017E Production Valhall & Bakken Utica S. Arne Bakken 34 % - Unconventionals and conventionals; US and Gulf of Mexico 21 International; onshore and offshore JDA Valhall & South Arne 12 - Top-quartile operating performance in Equatorial Stampede JDA 11 unconventionals and offshore drilling and Guinea Equatorial Guinea 8 development Utica 6 - Leveraged to liquids North Malay Deepwater Stabroek Block North Malay Basin 4 GoM Basin Guyana Bakken expected to be largest contributor Other 4 to Hess’ production growth through 2020 One of the Industry’s Hess’ Bakken Growth Engine (2016 Global Results) Strongest Balance Sheets $6.8bn of liquidity as of 2Q 2017 Production Capital & Exploratory Spend (MBoe/d) ($MM) - $2.5bn Cash Bakken represents 33% of production… …and 33% of total spend³ - $4.0bn Unused Revolver - $0.3bn Unused Committed Lines $276 No significant debt maturities until 2027 105 Net debt-to-capital: 19% as of 2Q 2017¹ $429 - One of the strongest ratios among selected 217 $1,449 large-cap peers² BBB- (Stable) / BBB- (Stable) / Ba1 (Stable) ratings by S&P, Fitch and Moody’s, respectively Bakken Midstream Bakken Upstream Hess Other Leading global independent E&P company positioned for Bakken growth (1) Excludes Hess Infrastructure Partners (HIP) net debt. (2) Includes APA, APC, CHK, CLR, COP, DVN, EOG, MRO, MUR, NBL, OXY, PXD, and WLL. (3) Includes upstream and midstream capex and exploratory spend. 5
Strategic Relationship with Strong Sponsors Hess’ Bakken Growth Set to Resume Hess’ Footprint in the Core of the Bakken Positioned for Sustainable Growth More DSUs in Core of Middle Bakken 400 30+ Stage Wells Since 2012 Than Any Other Operator No. of DSUs Hess Acreage Goliath 300 East Nesson 200 100 Stony - Creek Bakken Operators 1 2 3 4 5 6 7 8 9 >2,850 Future Operated Drilling Locations 1 Keene % of Total Inventory & Implied Rig-Years vs WTI Price Bakken Operators (≥15% After -Tax IRR Threshold) 100% (114 rig-yrs) Three Forks 85% 77% Little Buffalo Middle Bakken (98 rig-yrs) Knife Wallow 66% (89 rig-yrs) (76 rig-yrs) 49% (57 rig-yrs) Industry MB Wells: 28% 90 Day Cumulative Oil (32 rig-yrs) Murphy > 45 MBO Creek 25 - 45 MBO Core Middle Bakken < 25 MBO Core Three Forks $40 $50 $60 $70 $80 $ 90-100 WTI $/bbl Hess expect Bakken net production to grow ~10% per annum for next several years Source: NDIC and Hess analysis; DSU: 1,280 acre Drilling Spacing Unit (1) PF Jan 2017, assumes 25 wells/rig-year 6
Strategically Located Infrastructure Large-Scale Asset Base Serving Hess in the Core of the Bakken H1 2017 Adjusted EBITDA $3.0bn Invested Capital¹ Terminaling & Export Assets Gathering Assets by Segment² Terminaling Terminaling 20% HESM Interest & Export 13% Ramberg Terminal Facility (RTF) & Export 7% • Oil and gas gathering footprint in 20% HESM Interest the core of the Bakken Gathering Gathering 48% • Terminal capable of exporting 282 Processing 50% Processing & Storage • ~1,600 miles of gathering pipelines & Storage MBbl/d of crude oil 43% 39% • Hawkeye Gas and Oil Facilities • Crude oil storage • North of Missouri River export Processing connectivity to interstate pipelines & Storage Assets and rail Johnson’s Corner Tioga Gas Plant (TGP) Header System 3 20% HESM Interest 20% HESM Interest • South of the Missouri River export • 250 MMcf/d capacity including connectivity to interstate pipelines ethane extraction; expansion potential to 300 MMcf/d Tioga Rail Terminal & Rail Cars • 60 MBbl/d of NGL fractionation 20% HESM Interest capacity & storage • Connectivity to TGP, RTF and gathering systems Mentor Storage Terminal • Dual loop track with loading 100% HESM Interest capacity of 140 MBbl/d (crude oil) and 30 MBbl/d (NGL) • 328 MBbl of propane storage and • Crude oil storage export to capture seasonal • 550 crude oil rail cars built to the demand latest safety standards Note: Mentor Storage located in Mentor, MN (not shown). See appendix for reconciliation to GAAP financials. (1) Invested capital shown on a 100% basis of initial assets as of December 31, 2016. Segment contribution shown as percentage of total assets. (2) Segment H1 2017 Adjusted EBITDA and percent contribution based on Combined Hess Midstream Partners LP Predecessor and Q2 HESM results. Excludes MLP public company costs. (3) Under construction. 7
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